Question: A portfolio is equally split between 10 different stocks, each of which has a beta of 1.5 and the same correlation with the market portfolio.

A portfolio is equally split between 10 different stocks, each of which has a beta of 1.5 and the same correlation with the market portfolio. The idiosyncratic component of returns is uncorrelated across stocks. The annualized volatility of the market is 15%, and of the portfolios volatility is 24%.

Required:

What is the volatility of each stock?
What is the correlation between each stock and the market?
What is the correlation between one stock and another?

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